The Most Meaningful Action You Can Take For Your Self

Yesterday, I discussed this with one of my old friends. I like to stick around people who are older than me in age, and who have a great amount of wisdom and knowledge that I can use to equip myself for the years that is to come.?

My friend, whom I'll call Jonny was frustrated that they weren’t doing better. Now they were angry – at their employers, the government, and Everyone; angry that they hadn’t been able to save for their retirement; angry that their children weren’t doing any better than they did at their children’s age.?

They were angry at those at the top who they felt had rigged the system against them, and for their benefit. Several had lost jobs, savings, or homes during the pandemic.?

So before reading any further, I want you to do something for me, take a couple of deep breaths.

Relax!

Get comfortable, and do your best to focus on what we're discussing. This is not an article you want to hurry through, but I promise you in the end it will be worth your time.

The number of people age 65-plus working full- or part-time has risen from just under 11 percent in 1985 to nearly 19 percent in 2015.?

According to findings from the Transamerica Center for Retirement Studies' 2016 survey of workers, two-thirds of baby boomer workers plan to work past age 65, including some who don't plan to retire at all.?

Something as highly anticipated as retirement will surely be on your mind for a while before and after you approach this landmark - It's okay if things don't go as planned when it comes to something as big as retirement, sometimes it's best to go with the flow.?

If you expect the following, then you're well prepared.

• More time with family.?
• To take your health seriously.?
• To explore a new hobby.

Once upon a time, reaching age 65 meant you are done, and it was time to say adios to the office, but things have changed. Everything around us has changed.?

A large chunk of would-be retirees is continuing to work past their anticipated retirement date for quite a several reasons [Retirement includes facing a higher cost of living.]?

We often form expectations for our retirement based on the experience of our parents or older relatives and friends. As a result, It is important to keep abreast of trends that might affect retirement in the next few decades. In the coming years, any number of changes could affect the type of retirement you experience. So it would be wise to keep track of these and other related trends and developments and plan for possible changes.?

If you thought reaching 65 is dead, then you are dead yourself.?

To start with our investment process – we need to develop a strategy.

Develop specific strategies

Have a clear concise, and well-defined investment planning process.

1. Set Goals [make a plan]
2. Get Experts help when needed [ understand the regulation environment]
3. Set a time frame
4. Establish risk tolerance
5. Diversify
6. Review plans

I will give you an example; Let’s say you are 20 years old, something I wish for, but that’s the story for another day.

You are 20, and just out of university not saying this process is only for those who went to university – you want to save for your retirement.

How much must you save each year at 10% to reach your target at age 65?

The answer is that it will take a lot of effort, and some discipline – R 4 000 per year that’s a lot of money to some people, I also thought it was before I started taking my life seriously.

The price is going up, but it is not yet out of our reach.

What happens if we wait even longer?

• At age 30, the annual cost of meeting our goal has grown to R 10 000 a year.
• At age 40, 25 years are remaining to age 65 and the cost to fund your retirement supplement is now over R 28 000 per year.
• At age 50 means that there are only 15 years until your planned retirement, but you will need to deposit R 85 000 each year to achieve your retirement target.
• At age 60, it means that there are only 5 years left. R 450 000 is required each year to fund your retirement plan – the choice is yours here, either you work your butt off until 80 or you find a way like most of the guys who went and become millions with their big hairy ideas after they went past the retirement time. R 450 000 is way out of the question and not everyone has this kind of money laying there but many people find themselves in this situation, and the common reaction is to wonder how it will feel to still be working at age 80.

It is not always possible to start early, but the earlier we start the lighter the burden.

The cost of reaching our financial goal does go up each day – it is extremely easy to put off retirement planning. There is always a good excuse, so be aware and try not to let it happen to you.?

Final Words

Saving for your retirement is one of the longest and biggest financial commitments you will make. With access to investments that other funds cannot offer and their long-term track record, investment companies make a compelling case as part of a balanced portfolio for retirement. And with savers now having unprecedented freedom over how they can take their pension, now is the perfect time to learn about the unique advantages of investment companies in delivering a higher or growing income in retirement.?

In any case, even small amounts of savings will add up over time, particularly if they’re well invested. Regular saving works well with pensions. You’re investing consistently over an extended period. The key is to be ready for retirement, no matter what it looks like.

?DISCLAIMER: The Human In YOU does not offer any personal finance or investment advice, nor advocate the purchase or sale of any services, products, securities, or investments for any specific individual. Readers should be aware that The Human In YOU Page has advertising relationships with some of the strategies mentioned in this article. The Human In YOU does attempt to take a reasonable and good faith approach to maintain objectivity towards providing referrals that are in the best interest of readers.